Browsing: managing exchange rate

For Non-Resident Indians (NRIs), Indian mutual funds present an attractive avenue for long-term wealth creation, retirement planning, and financial diversification. However, one crucial element often overlooked is exchange rate risk—the impact of fluctuating currency values on investment returns. This blog explores how NRIs can strategically manage currency risks and safeguard their investments in mutual funds. What is Exchange Rate Risk? Exchange rate risk, also known as currency risk, refers to the financial exposure arising when investments are affected by changes in the relative value of currencies. When NRIs invest in Indian mutual funds—denominated in Indian Rupees (INR)—they may face gains…